Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

January 14, 2021

Financial Results for FY2020 Q2Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Sansan, Inc.
Tokyo Stock Exchange4443
https://www.corp-sansan.com/
Chikahiro Terada, Representative Director & CEO
Muneyuki Hashimoto, Director, CFO, Managing Executive (Finance & Accounting
Department)
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
January 14, 2021
Scheduled date to commence dividend payment:–
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first six months of the fiscal year ending May 31, 2021
(from June 1, 2020 to November 30, 2020)(1) Consolidated operating results (cumulative)
Net sales
Six months ended
November 30, 2020
November 30, 2019

Six months ended
November 30, 2020
November 30, 2019

Operating profit

Millions of yen% Millions of yen

7,636
6,294

Note: Comprehensive income(Percentages indicate year-on-year changes.)

21.3–

Profit attributable toowners of parent

Ordinary profit% Millions of yen

686
109

525.4
–

% Millions of yen

454
17

–
–

388
(91)

Six months ended November 30, 2020: ¥392 million [–%]
Six months ended November 30, 2019: ¥(88) million [–%]

Basic earnings per
share

Diluted earnings
per share

Yen

Yen

12.46
(2.97)

12.32–

Note: Diluted earnings per share for the six months ended November 30, 2019 is not stated because, although potential
shares exist, basic loss per share was recorded.

(2) Consolidated financial position
Total assets
As ofNovember 30, 2020
May 31, 2020
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

20,984
22,81910,982
10,55252.1
46.2

EquityAs of November 30, 2020:
As of May 31, 2020:¥10,933 million¥10,541 million%––

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2020
Fiscal year ending
May 31, 2021

Yen

–

0.00

–

0.00

Fiscal year-end

Yen–

Fiscal year ending
May 31, 2021–
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Total

Yen

Yen

0.00

0.00

0.00

0.00

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2021 (from June 1, 2020 to
May 31, 2021)
Net sales

Fiscal year ending
May 31, 2021

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen

15,767to
16,302

18.0
to
22.0

757
to
1,010

0.0
to
33.4

–

%

–

Millions of
yen

–

%

–

Yen

–

Notes: 1. Revisions to the earnings forecasts most recently announced: None
2. Although the Company is expecting to record a surplus in both ordinary profit and profit attributable to owners ofparent, it is difficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete
forecast at this point in time.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of issued shares (Common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2020

31,138,853 shares

As of May 31, 2020

31,138,853 sharesb. Number of treasury shares at the end of the period
As of November 30, 2020

40 shares

As of May 31, 2020–

c. Average number of outstanding shares during the period
For the six months ended November 30, 2020

31,138,842 shares

For the six months ended November 30, 201930,726,509 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the consolidated forecasts due to various factors.

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2

Attached Material
Index
1. Qualitative information on quarterly consolidated financial results ......................................................... 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 4(3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................ 5
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 6(1) Quarterly consolidated balance sheet .................................................................................................... 6(2) Quarterly consolidated statements of income and comprehensive income ........................................... 8
Quarterly consolidated statement of income ......................................................................................... 8
Quarterly consolidated statement of comprehensive income ................................................................ 9(3) Quarterly consolidated statement of cash flows .................................................................................. 10(4) Notes to the quarterly consolidated financial statements..................................................................... 12(Notes on premise of going concern)................................................................................................... 12(Notes on significant changes in the amount of shareholders’ equity) ................................................ 12(Segment information, etc.) ................................................................................................................. 12- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2

1. Qualitative information on quarterly consolidated financial results(1) Explanation of operating results
Under the mission of “Turning encounters into innovation,” the Group is developing services tied tosolving various issues that companies and business people face by using new approaches that combine“technology and data-input-based business card digitization systems” with “cloud software.”
Although the situation regarding the number of those infected by COVID-19 is expected to remain
uncertain for the time being, in the first six months of the fiscal year ending May 31, 2021 (“the period
under review”), restrictions on sales activities were on an easing trend compared to April and May,
2020 when the state of emergency declaration was issued throughout Japan. Under such circumstances,
the Group engaged in initiatives such as strengthening the sales structure, including human resources,in order to realize continuous growth of net sales. Furthermore, the Group promoted the expanded useof the “Virtual Cards” function usable within “Sansan,” a B2B business card-based contact
management service and “Eight,” a business card management app. Additionally, as new initiatives, we
focused on the launch of “Bill One,” an online invoice receiving service, and event tech services toresolve issues in business event operations.
We launched service for “Bill One” in May 2020, and the number of subscriptions at the end of theperiod under review increased by 10.6 times compared to the end of June 2020, making “Bill One” thefastest growing new service at the Company. In December 2020, we launched the Bill One Division,
aiming for more than 1,000 subscriptions by the end of the fiscal year ending May 31, 2022 bystrengthening our sales system and improving service. Additionally, in our event tech services, welaunched service for “Smart Entry by Eight Virtual Cards,” a next-generation entry form, and “Sansan
Seminar Manager,” a B2B seminar management system.
As a result, net sales totaled ¥7,636,768 thousand (up 21.3% year on year), gross profit totaled¥6,690,268 thousand (up 24.3% year on year), and gross profit margin was 87.6% (up 2.1 points year
on year) in the period under review. All profit items following operating profit improved due to thelarge improvement in profit margin following increased net sales. Operating profit was ¥686,904
thousand (up 525.4% year on year), ordinary profit was ¥454,260 thousand (compared to ordinary
profit of ¥17,203 thousand in the same period of the previous fiscal year), and profit attributable toowners of parent was ¥388,123 thousand (compared to loss attributable to owners of parent of ¥91,110
thousand in the same period of the previous fiscal year).
Results by segment are as follows.
Our services of each business, our business models, our competitive advantages, etc. are described on
the following IR section of the Company’s website. Please refer to the URL below for details.
IR section (description of Business Information):
https://ir.corp-sansan.com/en/ir/management/businessinformation.html(i) Sansan Business
The Company is developing services in the B2B business card management service market. The
Sansan Business, operated by the Company, holds an 83.5% share (Note 1.) in this market.
Moreover, further expansion of the size of this market is continuing, which is mainly a result ofrecent changes to employee working styles like remote work due to the spread of COVID-19, newways of thinking toward digital transformation, and greater attention being attracted to the SaaS
(Software as a Service) products. As for the digital transformation market, its worth in 2030 isforecasted to be ¥3,042.5 billion (an increase of ¥2,251.3 billion since 2019) (Note 2.), while the
SaaS market in Japan is forecasted to reach ¥1,117.8 billion by 2024 (an increase of ¥516.2 billion
since 2019) (Note 3.).
For the period under review, the Company continued to engage in initiatives, such as strengthening
the sales structure through strategic hiring and expanding use of “Virtual Cards” function, aimed atfurther increasing the number of subscriptions and the monthly sales per subscription for “Sansan.”While the spread of COVID-19 negatively affected the acquisition of new subscriptions, in our- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2

sales and marketing activities for “Sansan,” we succeeded in enhancing our cooperative systemwith corporate partners and steadily acquired new customers among medium to small enterprises.
As a result, the number of “Sansan” subscriptions at the end of the period under review totaled
7,230, up 15.4% year on year. In addition, monthly sales per subscription rose only slightly to ¥165
thousand, up 3.8% year on year due to sluggishness in some sales comprised of fees for the serviceof providing “Sansan” during the initial adoption period as a result of the effect of COVID-19.
Furthermore, as a result of carrying out ongoing initiatives to expand use among existing customers
to achieve a stronger customer foundation, the average monthly churn rate over the past 12 months(Note 4.) was 0.65% (an increase of 0.09 points year on year), maintaining a low churn rate of
below 1%.
As a result, net sales totaled ¥6,899,305 thousand (up 19.2% year on year), of which recurring net
sales (fixed revenue) in “Sansan” totaled ¥6,561,800 thousand (up 25.5% year on year) in the
period under review. Segment profit totaled ¥2,854,160 thousand (up 35.1% year on year).
Notes:1. Based on “Latest trends in business card management services and sales services[SFA/CRM/online business card exchange],” December 2020, Seed Planning, Inc.
2. Based on “2020 Outlook of the Digital Transformation Market” by Fuji Chimera
Research Institute
3. Based on “2020 New Software Business Markets” by Fuji Chimera Research Institute
4. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for “Sansan.”(ii) Eight BusinessIn the Eight Business, the Company bases the business on the business card management app“Eight” that enables users to use the profile management and business card management features at
no cost. On top of this, the Company provides the B2C services, “Eight Premium,” for individuals
who want access to extra user functions and the B2B services such as “Eight Company Premium,”a service that allows the sharing of business cards registered on “Eight” within a company, “EightAds,” a service that enables advertisements to be disseminated to “Eight” users, “Meets,” abusiness event that increases productivity by efficiently matching buyers and sellers, and “Eight
Career Design,” a recruitment related service that enables hiring companies (corporate client users)
to approach job seekers (individual users) on the job search platform.
In the period under review, the Company worked on strengthening monetization of the B2B service
through “Eight Company Premium” and other methods. As a result, the number of “Eight Company
Premium” subscriptions at the end of the period under review totaled 1,949, an increase of 67.4%
year on year. The number of “Eight” users (Note 5.) totaled 2.81 million, an increase of 0.23
million year on year. Moreover, in November 2020, we held the first “Climbers 2020,” a businessevent targeting young businesspeople. We received more than 14,000 entries, making “Climbers
2020” one of the Company’s largest business events. Additionally, results from our consolidated
subsidiary logmi, Inc. (“logmi”) began to contribute to results in September 2020 (recorded in thesegment’s B2B services sales).
As a result, net sales for the period under review totaled ¥738,362 thousand (up 46.3% year onyear), of which net sales from B2C services totaled ¥148,369 thousand (up 3.6% year on year), andnet sales from B2B services totaled ¥589,993 thousand (up 63.2% year on year). Segment loss wasrecorded at ¥358,812 thousand (compared to segment loss of ¥466,528 thousand in the same periodof the previous fiscal year) due to being in the phase in which upfront investments were being
made to increase future profitability.
Note: 5. Number of confirmed users who registered their business card to their profile after
downloading the application- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2(2) Explanation of financial position(i) Status of assets, liabilities and equity
AssetsTotal assets at the end of the second quarter of the fiscal year ending May 31, 2021 were ¥20,984,972
thousand, down ¥1,834,795 thousand from the end of the previous fiscal year. This was primarily due
to a decrease of ¥1,432,467 thousand in cash and deposits, a decrease of ¥1,006,966 thousand ininvestment securities, and an increase of ¥195,698 thousand in goodwill recorded as a result of making
logmi a subsidiary through the acquisition of its shares.
Liabilities
Total liabilities at the end of the quarter under review were ¥10,001,994 thousand, down ¥2,265,152
thousand from the end of the previous fiscal year. This was primarily due to a decrease of ¥1,804,283
thousand in long-term borrowings, a decrease of ¥154,262 thousand in current portion of long-termborrowings and a decrease of ¥332,217 thousand in advances received from receiving a lump-sum
payment of contract term fees from customers.
Net assets
Net assets at the end of the quarter under review were ¥10,982,978 thousand, up ¥430,356 thousand
from the end of the previous fiscal year. This was primarily due to an increase of ¥388,123 thousand inretained earnings due to recording of profit attributable to owners of parent.
(ii) Status of cash flows
Cash and cash equivalents (hereinafter “capital”) at the end of the quarter under review totaled¥11,227,378 thousand, a decrease of ¥1,436,067 thousand compared to the end of the previous
fiscal year. This decrease includes the effect of ¥494 thousand due to exchange fluctuations on
capital.
Cash flows from operating activities
The amount of capital provided by operating activities totaled ¥201,753 thousand (compared to¥728,706 thousand provided in the same period of the previous fiscal year). The main reasons for theincrease in capital were recognition of profit before income taxes of ¥450,462 thousand, recognition ofdepreciation, non-cash expense, of ¥338,432 thousand, and share of loss of entities accounted for using
equity method of ¥157,490 thousand, as well as an increase of ¥100,123 thousand in accounts payable other, and the main factors for the decrease in capital were a decrease in advances received of ¥360,753
thousand and income taxes paid of ¥160,753 thousand.
Cash flows from investing activities
The amount of capital provided by investing activities totaled ¥214,940 thousand (compared to¥5,664,749 thousand used in the same period of the previous fiscal year). The main reason for theincrease in capital was proceeds from sales of investment securities of ¥1,680,107 thousand, and themain factors for the decrease in capital were purchase of property, plant and equipment of ¥207,589
thousand, purchase of intangible assets of ¥324,539 thousand and purchase of shares of subsidiaries
and associates of ¥660,573 thousand.
Cash flows from financing activities
The amount of capital used in financing activities totaled ¥1,853,255 thousand (compared to¥11,714,565 thousand provided in the same period of the previous fiscal year). This was primarily due
to repayments of long-term borrowings of ¥1,984,378 thousand.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2(3) Explanation of consolidated earnings forecasts and other forward-looking statements
As the state of emergency was declared for some regions of Japan in January 2021, the Company needs
to pay close attention to the trends going forward. However, it also deems the impact will not be as
significant as in April and May 2020 when the state of emergency declaration was previously issued
throughout Japan. Therefore, we do not expect any further significant negative impact, and in light ofour solid performance to date, the full-year earnings forecasts have not changed from the forecasts
announced at the beginning of the fiscal year at this point in time. Additionally, the progress rate for theoperating profit for the period under review is high, but we will evaluate and implement various
strategies and investments to accelerate the net sales growth rate from the third quarter onward.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Thousands of yen)
As of May 31, 2020
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 6 -As of November 30, 2020

12,815,225
441,060
410,582
176,945(3,621)
13,840,192

11,382,758
454,496463,729
265,768(3,969)12,562,783

414,467

508,981925,803–
261
926,064

982,405
195,698196
1,178,300

6,941,596
549,412145,1852,850
7,639,043
8,979,576
22,819,768

5,934,629
545,087
248,371
6,818
6,734,906
8,422,189
20,984,972

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2(Thousands of yen)
As of May 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 7 -As of November 30, 2020

102,922
20,0001,267,490
596,265
225,471429,584
5,289,822
289,551
114,449
8,335,558

107,183
150,000
1,113,228
643,969
212,846
187,965
4,957,605
319,253
178,850
7,870,902

3,892,598
38,9903,931,588
12,267,147

2,088,314
42,7772,131,091
10,001,994

6,236,650
3,977,043
344,184–
10,557,879

6,236,650
3,977,043
732,308(262)
10,945,740(15,921)(15,921)
10,663–
10,552,621
22,819,768(11,843)(11,843)
43,772
5,308
10,982,978
20,984,972

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Thousands of yen)Six months ended
November 30, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Foreign exchange gains
Cancellation penalty income
Subsidy income
Gain on sales of investment securities
Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance costs
Stock market listing expenses
Commission expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodPenalty loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 8 -Six months ended
November 30, 2020

6,294,801
912,283
5,382,518
5,272,678
109,840

7,636,768
946,499
6,690,268
6,003,363
686,904

1,065
–
1,964
–
–
–
567
3,597

416
854
2,619
2,049
32,8975,498
547
44,882

2,659
28,102
15,175
19,456625

15,080––3,787–

26,705

157,490–
3,510
96,234
17,203

92,953
8,216
277,527454,260

6,421
37,85444,276(27,073)
64,036–64,036(91,110)–(91,110)

3,798
–
3,798
450,462
164,765(103,186)
61,579388,882758
388,123

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2

Quarterly consolidated statement of comprehensive income(Thousands of yen)Six months ended
November 30, 2019
Profit (loss)
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 9 -Six months ended
November 30, 2020

(91,110)

388,882

2,283
2,283
(88,826)

4,077
4,077
392,959(88,826)

392,201–

758

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2(3) Quarterly consolidated statement of cash flows(Thousands of yen)Six months ended
November 30, 2019
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Loss on retirement of non-current assets
Share-based remuneration expenses
Share issuance costs
Penalty loss on cancellation of rental contracts
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on closureof business locations
Interest and dividend income
Interest expenses
Commission expenses
Loss (gain) on sales of investment securities
Loss (gain) on investments in investment
partnerships
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Purchase of shares of subsidiaries and associates
Payments of leasehold deposits
Proceeds from refund of leasehold deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings- 10 -

Six months ended
November 30, 2020

(27,073)
291,422–37,854
6,421–
28,102–450,462
338,432
5,017
–
3,798
11,230–92,953234

317

58,722

29,669(6,960)–(1,065)2,659
19,456–(416)
15,080157(32,897)–(5,498)26,705

157,490

11,322(125,713)
18,614(10,002)214,381
114,534(26,528)
83,281
23,335
739,704
1,205(4,245)(7,957)
728,706(9)(54,315)(87,379)
2,002
100,123(360,753)(244,569)(59,080)
15,775377,591933(16,017)(160,753)
201,753(190,127)(265,221)(5,045,734)–(207,589)(324,539)(131,660)
1,680,107–(132,529)–(168,316)
4,650(5,664,749)(660,573)(10,182)
1,909
214,940

3,165
4,980,545(65,168)

123,938–(1,984,378)

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2(Thousands of yen)Six months ended
November 30, 2019
Proceeds from issuance of shares
Proceeds from issuance of share acquisition rights
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

Six months ended
November 30, 2020

6,815,396–(19,373)
11,714,565–
21,879(14,694)(1,853,255)

235

494

6,778,757
5,468,495
12,247,252(1,436,067)
12,663,445
11,227,378

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2(4) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Segment information, etc.)[Segment information]
Ⅰ

First six months of the fiscal year ended May 31, 2020 (from June 1, 2019 to November 30,
2019)
1. Information on the amount of sales and profit (loss) for each reportable segment
Reportable segments
SansanBusiness

Net sales
Sales to external customers
Intersegment sales or transfers

5,789,973–

Total
Segment profit (loss)

Eight Business

Total

504,828–

6,294,801–

5,789,973

504,828

2,112,931(466,528)(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2––

6,294,801–

6,294,801–

6,294,801

1,646,403(1,536,562)

109,840

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥1,536,562 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant impairment loss on non-current assets)
As corporate expenses not belonging to the Sansan Business, Eight Business and any reportablesegment, the Company reduced the carrying amounts for software to their recoverable amounts
and recorded the amounts of reduction in impairment loss.
The relevant amounts recorded in impairment loss for the six months ended November 30,
2019 were ¥6,387 thousand for the Sansan Business, ¥9,648 thousand for the Eight Businessand ¥21,818 thousand for corporate expenses not belonging to any reportable segment.

- 12 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q2

Ⅱ First six months of the fiscal year ending May 31, 2021 (from June 1, 2020 to November 30,
2020)
1. Information on the amount of sales and profit (loss) for each reportable segment
Reportable segments
SansanBusiness
Net sales
Sales to external customers
Intersegment sales or transfers

6,899,305–

Total
Segment profit (loss)

Eight Business

Total

737,462900

7,636,768
900

6,899,305

738,3622,854,160(358,812)(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2–(900)

7,636,768–

7,637,668(900)

7,636,768

2,495,347(1,808,442)

686,904

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥1,808,442 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant change in goodwill amount)
During the first quarter of the fiscal year ending May 31, 2021, goodwill was recorded in the“Eight Business” segment due to the inclusion of logmi in the scope of consolidation as aconsolidated subsidiary through the purchase of that company’s shares. In the six months ended
November 30, 2020, the resulting increase in goodwill amounted to ¥195,698 thousand.

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